UPDATE: This article has been updated with response from the Center for Civil Justice, which says it is disappointed in the ruling.

LANSING, MI - The Michigan Department of Human Services has authority to impose a five-year federal time limit for receiving cash assistance welfare benefits, the state Court of Appeals said in a ruling released Wednesday.

But the ruling appears to leave some unresolved issues in the ongoing dispute over welfare eligibility.

The appeals court ruled that while the Department of Human Services and Director Maura Corrigan had the power to cut off federal funds, the necessary rulemaking steps weren’t taken when it comes to cutting off state money involved in the welfare benefits. The ruling noted “it is clear that some state funds are used in administering” the welfare program.

Further court action likely will be needed to sort out those implications, and the case was remanded back to Genesee County Circuit Court.

“The court’s ruling clearly validates our assertion that the DHS Director has the authority to impose federal limitations to the cash assistance program in Michigan,” Corrigan said in a statement. “The state has had to fund cash assistance beyond the federal limit of five years, costing Michigan more than $70 million annually.”

Parties in the case have time to file for rehearings or other appeals.

“Our attorneys are currently reviewing the opinion,” Corrigan said. “A decision on next steps will not be made until a comprehensive review is complete.”

The Center for Civil Justice, which filed the lawsuit, said thousands of families with children could be barred from receiving cash assistance under the ruling.

“We are disappointed by the decision and are worried about its impact on thousands of needy families,” said Terri Stangl, executive director of the Center for Civil Justice. “We are especially worried about parents who were told for years that the state would
not count months of assistance when those parents were needed at home to care for children with significant disabilities, or when the parents were meeting work requirements but unable to earn enough to completely close their case.”

The lawsuit involves cash assistance benefits under the state’s Family Independence Agency program. The dispute involves whether funds can be cut off based on federal rules when recipients might still be eligible under state law.

The state was sued over the welfare benefits limit late last year. The suit challenged the Department of Human Services’ authority to impose five-year or 60-month limit through an administrative policy.

Genesee County Circuit Court Judge Geoffrey Neithercut ruled earlier that Michigan can’t cut off welfare benefits under the five-year federal limit if recipients still qualify for cash assistance under state law. Michigan has implemented its own 48-month time limit, but there are exceptions that can allow people to continue receiving benefits for a longer time in some cases.